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Class action case over fuel surcharge results in Avios distribution (US members only)

Class action case over fuel surcharge results in Avios distribution (US members only)

Old May 31, 18, 7:10 pm
  #1  
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Class action case over fuel surcharge results in Avios distribution (US members only)

I just received an email saying that agreement has been reached in a fuel surcharge class action lawsuit filed in the US.If you have redeemed British Airways Plc’s frequent flyer miles for an award ticket and paid a fuel surcharge, you may be eligible for benefits from a class action settlement.

· A Settlement has been reached in a class action lawsuit. In the lawsuit, Plaintiffs alleged that British Airways Plc (“BA”) breached its contract (the “EC Contract”) with members (“Settlement Class Members”) of its frequent flyer program (the “Executive Club”) because its fuel surcharges charged on reward flights were not reasonably related to the price or cost of fuel. BA maintains that the EC Contract permitted it to charge a fuel surcharge, denies that its fuel surcharges were not reasonably related to the price or cost of fuel, denies that it breached the EC Contract, and denies that it did anything wrong. · The United States District Court for the Eastern District of New York (the “Court”), which is overseeing this lawsuit (the “Litigation”), has not decided who is right. Instead, the parties agreed to a compromise. Defined terms (with initial capitals) used herein and not otherwise defined have the same meaning as set forth in the Settlement Agreement. · BA’s current airline fares, taxes, and fees are not implicated by the allegations in the Litigation and not at issue in the Litigation.

Trying to winnow out key points of interest:

The Settlement only impacts you if you are a Settlement Class Member. A Settlement Class Members is a United States resident Executive Club member who redeemed frequent flyer miles (“Avios”) for an award ticket from November 9, 2006 through April 17, 2013 (the “Class Period”), who paid a BA-imposed fuel surcharge, and who provided BA with a valid United States address at the time of booking.

If you are an Active Executive Club Member, you will automatically receive between 12,500 and 35,000 Avios (depending on how many times you redeemed Avios during the Class Period as set forth below) unless you choose a cash payment (“the Cash Option”).

If you want cash rather than Avios, you must file a claim by 29 July 2018. Otherwise, no action is needed.

You can read more details at Home .
dhuey, jkw76, kaka and 2 others like this.
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Old May 31, 18, 9:39 pm
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Any idea when the Avios will be credited to your account?
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Old May 31, 18, 9:42 pm
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"us residents" depends on what your address is in your account?
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Old May 31, 18, 10:19 pm
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Interesting - I had a J redemption with a 2-4-1 SEA-LHR-ZRH in 2012

- note that, “The Settlement Class under the Settlement excludes:
(1) Executive Club Members who redeemed frequent flyer miles exclusively using BA’s “Cash + Avios” option;”

And, “when will the settlement go into effect?
The Court will hold a Final Approval Hearing on July 27, 2018 at 10:00 am Eastern Time to decide whether to approve the Settlement. Even if the Court approves the Settlement, there could be appeals. The time for an appeal varies, and could take more than a year.

The Effective Date is the date when all appeals are completed, and the Settlement becomes final. You can visit this website's Homepage periodically to check on the progress of the Court-approval process and the Effective Date. Please be patient.

Avios deposits and Cash Option checks will be issued no more than 30 days after the Effective Date. The Court will have the power to enforce the terms of the Settlement Agreement.

so it could be August or who knows when!
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Old May 31, 18, 10:20 pm
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This is quite interesting. I recall being called by the attorneys many years ago about this class action lawsuit. They had wanted to include me as a class representative because I had redeemed so many miles, but then the subject of the case was restricted to redemptions only between LHR and NYC. I've never heard or seen anything about it again. To be clear, while the case focused narrowly on one route for award redemptions, it applies to all USA redemptions.
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Old May 31, 18, 10:25 pm
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Wow, up to 35,000 avios for being charged hundreds if not thousands of dollars in excessive and patently fraudulent “fuel surcharges” even as the price of oil plummeted over a period of several years. I wonder who the real winners are here? Oh, look, it’s in the FAQ, under “how will the attorneys be paid?” “In connection with the Final Approval Hearing on the Settlement, Class Counsel will apply to the Court for an award of expenses and attorneys' fees, with the total amount not to exceed $3,750,000 in expenses and $11,095,000 in fees, which is approximately equal to twenty-nine (29) percent of the $42,000,000 total settlement consideration after deduction of expenses.” So those people who were duped by BA for years will get up to 35,000 Avios each and the lawyers will get $15,000,000.
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Old May 31, 18, 10:39 pm
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Why is it limited to 2006-2013? Have the fuel surcharges gone down since then, or has the price of oil gone up so much that it's now closer to those surcharges? I don't think either of those are true.
Should we expect another class action in a few years covering the 2013-2020 period?
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Old May 31, 18, 10:54 pm
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What about those of us who paid loads of $ along with miles from AS and other carriers? Are we included in this or is it only for those using BA accounts? I've been redeeming miles from partner accounts for the last 10 or 11 years at least once a year and always in F...I don't think I've paid less that a $500 "charge" each way for any of them. I would prefer some cash to Avios but ....
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Old May 31, 18, 11:09 pm
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Originally Posted by Pocalypse View Post
Why is it limited to 2006-2013? Have the fuel surcharges gone down since then, or has the price of oil gone up so much that it's now closer to those surcharges? I don't think either of those are true.
Should we expect another class action in a few years covering the 2013-2020 period?
Probably because it has been going on for a long while
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Old Jun 1, 18, 12:33 am
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Originally Posted by Pocalypse View Post
Why is it limited to 2006-2013? Have the fuel surcharges gone down since then, or has the price of oil gone up so much that it's now closer to those surcharges? I don't think either of those are true.
Should we expect another class action in a few years covering the 2013-2020 period?

Because from that time YQ was no longer referred to as a ‘fuel surcharge’ it became known as ‘carrier fees’.

Last edited by Tobias-UK; Jun 1, 18 at 1:08 am Reason: Quoted wrong post
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Old Jun 1, 18, 12:48 am
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Originally Posted by prof View Post
Wow, up to 35,000 avios for being charged hundreds if not thousands of dollars in excessive and patently fraudulent “fuel surcharges” even as the price of oil plummeted over a period of several years. I wonder who the real winners are here? Oh, look, it’s in the FAQ, under “how will the attorneys be paid?” “In connection with the Final Approval Hearing on the Settlement, Class Counsel will apply to the Court for an award of expenses and attorneys' fees, with the total amount not to exceed $3,750,000 in expenses and $11,095,000 in fees, which is approximately equal to twenty-nine (29) percent of the $42,000,000 total settlement consideration after deduction of expenses.” So those people who were duped by BA for years will get up to 35,000 Avios each and the lawyers will get $15,000,000.
Sounds abut right. I am battling with BMW to get some sort of compensation from class action case where I might get "up to $1000" for repairs that cost me around $3000
On top of that, they claim that my dealership bills do not show the repairs done. I had to highlight them and resend it via certified mail. So it almost looks like I will have to sue those who sued BMW to get at least $1K, yet the lawyers got about 20 million off the lawsuit.
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Old Jun 1, 18, 5:04 am
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Got the email overnight and I'm eligible too. I agree that 35,000 isn't much if you had quite a few award bookings, companion bookings as well. I have about 5 trips eligible I think - and 16.9% of the fuel surcharges for the cash option isn't great. Not sure what I'll do yet.

Not great Settlement terms, to be honest - but it's something.
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Old Jun 1, 18, 5:38 am
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I am an ex-US EC member, currently UK based. I received the class action email. Curious whether I will be entitled given that I switched my EC location in 2014.
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Old Jun 1, 18, 6:25 am
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Ms SOZ and I flew BA (LHR-FCO) six years ago using AVIOS.
Our experience was bad and we never used BA again.
Any cash we get from this settlement will be spent on another carrier.
Deal Karma is real.
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Old Jun 1, 18, 6:54 am
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Some brief details on Head for Points:

https://www.headforpoints.com/2018/0...luation-alert/

To quote the initial paragraphs:

”If you lived in the United States between November 2006 and April 2013, you could be in line for a windfall following the proposed settlement of a class action lawsuit against British Airways over Avios redemptions.

The case – put simply – was that British Airways added surcharges to Avios redemptions in breach of Executive Club terms and conditions. Whilst these were called ‘fuel surcharges’ there was no proof that they bore any relation to changes in the cost of aviation fuel”.

The article raises the possibility of a devaluation as a consequence.
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